CBN pays N6.9 billion to gas suppliers

CBN pays N6.9 billion to gas suppliers

The Central Bank of Nigeria, CBN, paid gas suppliers the sum of N 6. 9 billion as part of its Nigerian Electricity Market Stabilisation Fund set aside to ensure a steady power supply to the Nigerian public, Vanguard reports.

The Governor of CBN, Mr. Godwin Emefiele, who handed cheques to seven companies in Abuja, said that the facility was a part payment for debts owed the gas suppliers by electricity Distribution Companies, Discos, across the country.

CBN had set aside N213 billion to help stabilize the electricity power sector by providing funds to operators in the sector to enable them make necessary investments as well as, clear debts that have been considered as inhibiting power supply to homes and businesses.

Mr. Emefiele disclosed that Discos were owing gas suppliers as much as, N40 billion as at the end of December 2014.

Companies that got paid were: Chevron, N2.04 billion; Ibom Power, N1.7 billion; Shell, N965 million; ND Western N852 million; Seplat, N739 million; NPDC, N407 million; and Pan Ocean, N 230 million. Eko Disco also received N4.4 million.

The CBN boss noted that gas pricing in the country has become commercially viable to the extent that existing investors could expand their operations and that even new investors could be attracted to the Nigerian market.

Oil and Gas Press